A NEW paper commissioned by SNP MP Ian Blackford has seen experts lay out key areas for Scotland to focus on in delivering economic growth.
The report seeks to establish how Scotland can improve its economy now, with the longer term aim of securing independence as a way for the country to prosper.
The Roadmap for Scottish Green Industrial Strategy - led by experts Sir Martin Donnelly and Professor Dominic Houlder - has identified the “sheer scale of opportunity” Scotland has in both the alternative energy and higher education sectors.
It has recommended a single decision-making body be formed in the autumn to have overall control of growth priorities, away from day-to-day government business, called the Scottish Industrial Strategy Council.
Below are the main points the paper covers.
Potential in higher education
The paper states Scotland needs to focus on its strengths when it comes to economic growth and areas where it has a competitive advantage.
Houlder and Donnelly say it is clear the range of STEM [science, technology, engineering and maths] output from Scottish universities that Scotland already works at the leading edge of European research across a range of disciplines.
But they say there is a risk the higher education sector succeeds in developing talent and valuable intellectual property with little impact on the Scottish economy more broadly if it doesn’t develop better ecosystems in this area.
More collaboration across the higher education and further education sectors would allow more businesses to emerge from research and come to scale in Scotland.
The paper says there is a need to grow existing clusters of start-ups around universities and research centres. It highlights how there is scope for shared business services across the university sector which could include support for technology entrepreneurs from university business schools and access to shared assets like wet labs for bioscience spin-outs – when research from a university is commercialised.
There is also a need for effective links between research universities and further education colleges, with Houlder and Donnelly highlighting a “messy landscape” in this area.
Alternative energy opportunities
The paper also explores how Scotland can use immense opportunity in the alternative energy sector to boost economic growth.
It states that if the sector is to develop many more jobs than those lost to the decline of fossil fuels, that will require the development of subcontracting networks, community engagement and a long-term political commitment to provide finance and wider political support for the development of necessary skills and infrastructure.
It warns that without effective collaboration in the sector, it risks delivering “less value added than the existing fossil-based sector in the north-east of Scotland”.
The report says: “In alternative energy we need to see onshoring of critical enabling technologies in wind and green hydrogen so that the sector is not just a major player in energy output but also a strong international competitor in the relevant technologies, where the competitive race still remains open.”
The Scottish Industrial Strategy Council
To ensure growth is achieved and monitored effectively in the above areas, the report recommends the creation of a Scottish Industrial Strategy Council.
This would be a single-decision making body with overall control of growth priorities. The report says: “Otherwise, the pressures of day-to-day government business will inevitably reduce attention given to the delivery of genuinely strategic choices around green energy provision, university innovation clusters or key research areas; in particular, financial decision-making on medium-term priorities needs the authority of the whole government to ensure credibility is maintained over time.”
The paper suggests the council should be launched at a conference convened by the First Minister and permanent secretary in autumn 2023. Then, from next year, it would have a recognised power to take decisions and allocate resources reflecting on decisions on government priorities around economic growth.
It is proposed it meets every three months with membership included the FM and relevant cabinet secretaries as well as the permanent secretary, chief economist, chief entrepreneur, chair of the Scottish National Investment Bank, two vice chancellors of universities, representatives from Scottish business, finance and labour organisations, plus up to three individuals nominated by the FM to provide independent input.
It is advised the council sets up taskforces on green energy infrastructure, developing university-based innovation, increasing investment finance and digital skills which would meet bi-monthly.
Scotland’s ‘underperforming’ economy
Blackford notes at the start of the paper how the economic history of Scotland over the last century “has been one of underperformance relative to our potential and opportunities”.
The experts also say there it has underperformed economically compared to similarly-sized economies in North West Europe.
Blackford said: “It is my firm belief we require a renewed focus on sustainable economic growth not simply for its own sake, but to deliver prosperity for our people and society.”
